MAYFIELD VILLAGE, OHIO, Dec. 08, 2025 (GLOBE NEWSWIRE) -- On December 5, 2025, the Board of Directors of The Progressive Corporation (NYSE:PGR) declared an annual common share dividend, in the amount of $13.50 per share, and a quarterly common share dividend, in the amount of $0.10 per share. Both the annual and quarterly dividends are payable January 8, 2026, to shareholders of record at the close of business on January 2, 2026. The annual dividend amount for 2025 was determined by the Board based on our c ...

We came across a bullish thesis on The Progressive Corporation on Value investing subreddit by OnTheStreetwithLou. In this article, we will summarize the bulls’ thesis on PGR. The Progressive Corporation's share was trading at $228.76 as of December 2nd. PGR’s trailing and forward P/E were 12.50 and 14.24 respectively according to Yahoo Finance. JMP Securities Lifts Atlanticus (ATLC) Target to $95 from $78 The Progressive Corporation operates as an insurance company in the United States. PGR presents an ...

Core Viewpoint - The Progressive Corporation (NYSE:PGR) is highlighted as a strong low volatility investment option, with an increased price target of $260 from $247 by BMO Capital analyst Michael Zaremski while maintaining a Market Perform rating on the shares [1][2]. Financial Performance - The Progressive Corporation reported $7.002 billion in net premiums written in October 2025, an increase from $6.578 billion in the same month last year, indicating growth in the company's premium income [3]. - The net income for October 2025 rose to $846 million, a significant increase of 107% compared to $408 million in October 2024 [3]. Share Repurchase Strategy - In October, The Progressive Corporation repurchased a modest $24 million in shares, but it is anticipated that the company will engage in repurchases in the low billions through 2026 if its P/E multiple remains below 15 times [2]. Company Overview - The Progressive Corporation operates as an insurance holding company, providing residential property insurance, personal and commercial auto insurance, and other specialty property-casualty insurance and related services through its Personal Lines, Commercial Lines, and Property segments [4]. Market Conditions - The company has maintained consistently excellent margins, with double-digit auto inflationary pressures showing signs of deceleration from all-time highs [3].

Core Insights - The Progressive Corporation (PGR) is valued at a market cap of $132.8 billion and specializes in personal and commercial automobile insurance, as well as property and specialty insurance products [1] - PGR is classified as a large-cap stock, highlighting its size and influence in the property and casualty insurance industry, with a strong focus on technology and customer analytics for sustained growth [2] Financial Performance - PGR's shares have declined 21.8% from its 52-week high of $292.99, with a 6.9% drop over the past three months, underperforming the Dow Jones Industrial Average's 4.4% increase [3] - Over the past 52 weeks, PGR has fallen 14.5%, significantly lagging behind the Dow Jones Industrial Average's 5.7% return, and is down 4.4% year-to-date compared to the Dow's 11.5% surge [4] - Following a weaker-than-expected Q3 earnings release, PGR's shares plunged 5.8%, with overall revenue increasing 14.2% year-over-year to $22.5 billion, but falling short of Wall Street expectations [5] Earnings and Key Indicators - PGR's EPS increased 12.1% year-over-year to $4.45, but missed consensus estimates by 16% [5] - Other key indicators, including the combined ratio and net premiums earned, also fell behind analyst forecasts, impacting investor confidence [5]

Group 1 - The Progressive Corporation (NYSE:PGR) is considered one of the best large-cap stocks for long-term investment, with a recent price target adjustment from BofA to $346 from $351 while maintaining a Buy rating [1] - In October, Progressive added 273,000 net personal auto consumers, a significant increase compared to 150,000 in September, indicating a strong recovery after six months of declining growth [1] - The company reported $7.002 billion in net premiums written in October 2025, up from $6.578 billion in the same month last year, reflecting a positive trend in revenue growth [2] Group 2 - The net income for October 2025 rose to $846 million, a substantial increase of 107% compared to $408 million in October 2024, showcasing strong financial performance [2] - October 2025 marked the third-strongest monthly net policy growth of the year, countering the bearish sentiment that has affected the company since April [3] - Progressive operates as an insurance holding company, providing various insurance products through its Personal Lines, Commercial Lines, and Property segments [4]

Core Viewpoint - The Progressive Corporation (PGR) is considered a buy due to its ability to sustain an above-industry-average Return on Equity (ROE) in the long term [1]. Company Performance - Progressive has successfully maintained a lower combined ratio than the industry average, indicating effective cost management and operational efficiency [1].

Core Insights - Progressive Corporation (PGR) has significantly improved its net margin, with a 980 basis point increase over the last two years and a further 170 basis point rise in the first nine months of 2025 [1][9]. Group 1: Margin Improvement Drivers - PGR's market presence, distribution innovation, underwriting technology, and quantitative analytics in pricing and risk selection are key factors driving net margin improvement [2]. - The company anticipates near double-digit rate increases for both personal property and core commercial auto products through the remainder of 2025 [2]. - The Personal Auto segment is a long-term growth driver, enhancing premium volume and profitability, while prudent reinsurance strategies help limit losses and support margin expansion [4][9]. Group 2: Technological Investments - PGR continues to invest in generative AI tools aimed at improving policy pricing and identifying new business opportunities [3]. - The Snapshot program is expected to enhance the accuracy of personal auto rating, while machine learning is utilized for faster insights and better decision-making [3]. Group 3: Competitive Landscape - Chubb Limited (CB) has achieved a 440 basis point margin rise through disciplined underwriting and effective pricing, highlighting the importance of operational efficiency [6]. - Berkshire Hathaway (BRK.B) has experienced net margin variability due to various factors, emphasizing the need for predictable, high-quality business expansion and pricing discipline [7]. Group 4: Stock Performance and Valuation - PGR shares have underperformed the industry, losing 6% year to date [8]. - The company trades at a price-to-book value ratio of 3.75, significantly above the industry average of 1.52, but holds a Value Score of B [10]. Group 5: Earnings Estimates - The Zacks Consensus Estimate for PGR's fourth-quarter 2025 EPS has decreased by 1.4%, while estimates for the first quarter of 2026 remain unchanged [11]. - Revenue and EPS estimates for 2025 indicate year-over-year increases, but the EPS estimate for 2026 suggests a decline [13].

Core Viewpoint - Investor Steve Eisman believes Progressive Corp. is undervalued and represents a significant value investing opportunity at current levels [2][4]. Company Overview - Progressive Corp. is based in Ohio and has been owned by Eisman for several years [2]. - The company operates with a business model similar to Walmart and T-Mobile, allowing it to operate efficiently and offer cheaper products and services [2]. Market Position - Eisman notes that Progressive is capable of gradually increasing market share despite competitive pressures [3]. - The stock is currently trading at approximately 13.5 times the 2026 consensus earnings estimate, which Eisman considers inexpensive [4]. Financial Performance - Progressive reported $20.849 billion in revenue and earnings of $4.06 per share for the third quarter, missing consensus estimates [4]. - Following the earnings report, most analysts lowered their price targets, with the average consensus now at $263.07, indicating a potential upside of 15.93% from current levels [5]. Stock Performance - The stock has declined 5.71% year-to-date and trades at under 13 times earnings and 1.57 times sales [6]. - The relative strength index (RSI) is at 55.1, suggesting a neutral-to-bullish outlook [6]. - Shares of Progressive closed at $226.91, with a slight increase of 0.40% on the last trading day [7].

Core Insights - Rising costs and changing customer expectations are impacting satisfaction levels in the insurance and mortgage industry, as highlighted by the American Customer Satisfaction Index (ACSI) study [1][2] Industry Performance - Life insurance scored the highest satisfaction at 78, despite a 1% decline [1] - Health insurance and property and casualty (P/C) insurance both scored 76, with P/C considered the industry average [2] - Mortgage lenders ranked lowest at 74, also experiencing a 1% drop [2] Customer Expectations - Customers across all industries are seeking clarity, responsiveness, and human interaction [2] - The future of insurance and mortgage lending is seen in blending technological convenience with personal connection, enhancing customer understanding and support [3] Company-Specific Insights - USAA leads the P/C industry with an ACSI score of 85, up 2%, while State Farm follows at 79, down 1% [4] - Progressive achieved the largest year-over-year gain in the P/C sector, increasing by 3% to 78 [4] - Geico, Farmers, and Travelers saw significant declines in their scores, with Travelers dropping 8% to 72, the lowest among major providers [5] Customer Experience Metrics - Overall customer experience metrics declined, with claims processing speed at 73, call center satisfaction at 76, and agent courtesy at 72, all down by 5% [7] - Policy discounts and rewards metrics fell by 3% to 74, while mobile app quality and reliability decreased by 2% to 81 [8]

Core Viewpoint - Progressive (PGR) shares have declined approximately 22% since the initial coverage in March, attributed to high valuation despite strong fundamentals, suggesting a wait for a better entry point [1] Company Analysis - The company is recognized for its strong fundamentals, yet the current valuation is considered high, leading to a cautious investment stance [1] Investment Philosophy - The investment philosophy emphasizes acquiring high-quality stocks and businesses led by disciplined capital allocators that generate exceptional returns on capital and can compound invested capital over extended periods [1]